Daley Allies Win Spoils Of City Lobbying

March 16, 1990|By Joel Kaplan.

Companies and individuals seeking influence or favorable treatment when the City of Chicago awards contracts and passes laws have paid hundreds of thousands of dollars in lobbying fees to elected officials and close associates of Mayor Richard Daley, city records show.

A review of city ethics forms shows how those needing governmental favors have begun seeking out those perceived as having influence with the Daley administration in the hope of securing multimillion-dollar contracts or influencing specific pieces of legislation.

A review of city ethics forms also reveals the degree to which Daley insiders have begun sifting off lucrative lobbying work, while politicians and lawyers who prospered under the mayoral administrations of Harold Washington and Eugene Sawyer are gradually being frozen out.

The list of legislators, committeemen and former top government officials now being hired as lobbyists is a who`s who of current political muscle. They include:

- Former Ald. William Singer, vice chairman of the interim Chicago Board of Education and a key Daley supporter, who was paid $115,000 by United Airlines to negotiate a lease with the city for a new United reservations center.

- John Schmidt, who served as Daley`s chief of staff for the first several months of his administration, who has been hired as a lobbyist by three companies seeking multimillion-dollar city contracts. One is

Commonwealth Edison, which is seeking an extension of its electrical franchise. Another is a bill collection firm barred from doing business with the city because of its role in a bribery scandal.

- Anne Burke, wife of Ald. Edward Burke (14th) who regained his powerful Finance Committee post under Daley. She listed 13 clients, including O`Hare Development Group, which has an airport lease.

- Cook County Recorder of Deeds Carol Moseley Braun, who was paid $40,000 last year by two clients, the law firm of Jones, Ware & Grenard and State Rep. Alfred Ronan (D-Chicago). She said she is on retainer to the firm and Ronan. On their behalf, she said, she makes contact with city officials. She is paid $50,000 annually as county recorder.

- Ronan, a marketing firm owner, lists 11 of his own clients, an increase over the four he had a year ago. Ronan, a big supporter of Daley, is also the political protege of Ald. Richard Mell (33rd) who assumed the powerful Rules Committee chairmanship this year.

``I had a busy year,`` Ronan said. ``The main thing I try to provide for clients is access, and I was able to provide access to city officials and decision-makers. From that aspect, I had a good year.``

Among Ronan`s clients are two securities firms seeking city bond work and several city vendors. Ronan also lobbied the mayor and the Department of Streets and Sanitation on behalf of a law firm seeking money for one of its clients, according to his disclosure form. Ronan received a total of about $50,000.

The public identification of lobbyists and disclosure of moneys they are being paid is the result of a city ethics law passed in 1987. Although lobbyists have theoretically been required to file reports prior to this year, this is apparently the first time the city has received complete forms from all known lobbyists.

The actions of Merrill Lynch Teleport Technologies Inc., show how the money flow has tilted. Last year, the New York company hired the Chicago law firm of Altheimer & Gray to lobby before the city in hopes of getting a fiber optics franchise. Arnold Kanter, a member of the law firm, was Sawyer`s personal lawyer.

This year, the company changed lobbyists and hired Schmidt, now an attorney with Skadden, Arps, Slate, Meagher & Flom.

Schmidt said Thursday that his law firm represents all three companies that have hired him as a lobbyist. But he acknowledged that while the firm did legal work, this is the first time they have done any lobbying work for them. One of those companies is Lockheed Information Management Services Co., which was barred by former Mayor Washington from doing business in Chicago because its former president admitted he had bribed officials in New York City.

``It wasn`t a question of anyone becoming a client because of my relationship with the mayor,`` Schmidt said. ``Lockheed did ask a few months ago if I could help them try to clear the air, and I did set up a couple of meetings with people in the city administration to explain their prior problems and help convince the city that they shouldn`t be disqualified from bidding.``